Tuesday 22nd June 2010 |
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International forces are at play in our market at the moment with China's move to make the Yuan "more flexible" pushing up commodity and oil prices. Close to home changes to the telecommunicaitons market in Australia drove Telstra and Telecom shares yesterday. Sky City features in early morning new today.
Themes of the day: The market digested the news that China is to relax the yuan’s fixed rate to US dollar, and Channing Smith, vice president of Capital Advisors in Tulsa said “this move is going to be good for global markets and help the bottom lines of companies with Chinese exposure.”
Spot yuan prices rose to its highest level since its revaluation five years ago, as its floating will boost China’s buying power abroad and is seen as broadly positive for the global economic recovery, and commodity currencies such as the NZ dollar.
It spurred a worldwide rise in commodity and oil prices and boosted riskier assets across the board. Overnight the NZ dollar fell to $0.7086 from $0.7130 against the greenback.
Port of Tauranga (NZX: POT ): New Zealand’s largest export port has raised its expected profit to about $50 million from $45 million for the year ended this month. Revenue growth through palm kernels, fertilizers and forestry were the standouts. The shares lifted 10 cents yesterday to $6.80. Morningstar rates the stock a "hold" in today's Daily ShareChat.
Sealegs (NZX: SLG ): The amphibious boat maker yesterday announced that that it would take a $6.2 million capital injection from private equity group Avenport Investment in exchange for 20% in the company. This will bring Avenport’s stake in the company to 39.9%. Sealegs stock was unchanged at 23 cents yesterday.
Sky City Entertainment (NZX: SKC ): New Zealand’s largest casino owner said after taking advice on the government’s recently announced deferred building depreciation tax liability it is making a one-off net profit adjustment in profit to the end of June of $60 million. The removal of building depreciation and corporate tax rate reduction from 30% to 28% will be to increase the Group’s tax paid income by approximately $2 million a year from July 2010. It expects its June 2010 profit to be between $126 million to $130 million. Its shares lifted two cents yesterday to $2.86.
Telstra (NZX: TLS ): The Australian phone company's shares surged 9.5% to $4.16 on the NZX yesterday after the weekend announcement that the company signed an accord with the Rudd administration that would see the company migrate its voice and data traffic onto the new government-backed network. Telecom (NZX: TEL ) rose 2.7% to $1.94 as some investors speculated it could strike a similar deal in New Zealand.
AMP (NZX: AMP ): The company yesterday gained Commerce Commission approval to acquire the Australasian assets of Axa Asia Pacific Holdings. AMP is in pole position to bid for Axa after rival suitor National Australia Bank was knocked back in its superior A$13.29 billion proposal by Australia's regulator. The stock rose 0.3% to $6.98 on the NZX yesterday.
Horizon Energy (NZX: HED ): First NZ Capital Securities yesterday confirmed that it had completed its stand in the market for Marlborough Lines, which has acquired 2.5 million shares at $4.15 apiece. The shares last traded in June 18 at $4.06, equivalent to the offer price minus the next dividend payment.
OceanaGold (NZX: OGC ): The operator of the Macraes gold field rose 1.5% to a new record high close of $4.76 after the price of gold climbed to a new record. The precious metal rose again overnight, reaching US$1,265.30 an ounce in London as fears about Euro-zone debt pushed investors to the relative safety of gold. The shares have soared 244% in the past 12 months.
Businesswire.co.nz
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